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Loans

IRR

It is used to evaluate the profitability of potential investments and is expressed as a percentage.

Understanding finance terms is crucial for making informed investment decisions. One such term is the Internal Rate of Return or IRR. It measures the cost of capital and the potential earnings from a loan. This percentage helps evaluate the profitability of investments. In simpler terms, IRR tells us whether an investment is worth it or not. So, always keep an eye on the IRR when considering investment opportunities.

Estimation

In finance, it is crucial to accurately determine the value of an asset, particularly if it is a pre-existing property. This process is known as estimation, or valuation. As...

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Total initial payment

When purchasing an asset, the customer is required to make an initial payment. This payment not only covers the cost of the asset, but also includes any service charges and ...

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Annual Reducing Method

Let's dive into the concept of diminishing balance method, a technique used to calculate interest on loans. The reduced principal is taken into consideration at the end of ...

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Flexible installment

When determining the installment amount, it is crucial to consider a changeable benchmark. This benchmark serves as a reference point for evaluating the success of an investm...

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